Diamond Trust Bank (DTB) Kenya net profit for three months ended March 2025 grew 9.9 percent to Sh3.23 billion on the back of increased interest income and reduced operating expenses.
Results released Wednesday showed net earnings grew from Sh2.94 billion that had been posted in the preceding similar period last year.
Net interest income grew by 7.98 percent to Sh7.66 billion from Sh7.09 billion in the period the loan book increased by six percent to Sh284.26 billion.
However, the lender’s non-interest income dropped by 18.5 percent to Sh3.02 billion from Sh3.71 billion, majorly on the back of foreign exchange trading income reducing by 55.6 percent to Sh745.95 million.
Many banks have reported a softer rise in their first quarter earnings as others posted drops coming in an environment of falling interest rates and narrower movements in the shilling’s exchange rate against major currencies such as the dollar.
Banks are coming from a season of elevated interest rates that were seen in 2024, with the Central Bank of Kenya cutting the Central Bank Rate amid stable exchange rate and inflation settling within the targeted range of between 2.5 percent and 7.5 percent.
The lender’s operating expenses reduced by 2.9 percent to Sh6.62 billion on the back of reduced provisioning for loan defaults.
The amount of money set aside for possible loan defaults dropped by 42.7 percent to Sh886.26 million from Sh1.54 billion in the period gross non-performing loans and advances rose to Sh39.68 billion from Sh37.85 billion.
The lender’s staff costs went up by 20.2 percent to Sh2.71 billion from Sh2.26 billion, reflecting increased number of employees and salary increments. DTB added six branches to its network in 2024.
DTB Group notes in the latest annual report, increasing branches to 158 from 152 has made access easier for customers, particularly those in the rural areas. Across the group, DTB’s headcount increased by 109 to 2,886.
The group will hold its annual general meeting next month, with investors expected to endorse the board’s proposal to pay Sh7 per share as dividend after the net profit for 2024 rose by 11 percent to Sh7.64 billion.
The dividend, amounting to Sh1.96 billion, will mark a rise from Sh1.68 billion paid on the preceding year’s performance when net profit was at Sh6.88 billion.
The Sh7 per share dividend is the highest ever for the lender and marks a more than doubling from the Sh3 it paid on the performance of the year ended December 2021.
The increased payout is in line with DTB’s promise to shareholders that it would progressively increase the dividend payout ratio on the back of improving performance and a balance between rewarding shareholders and conserving capital to fund growth.
